One way marketers and businesses are getting closer to customers is through SMS marketing. This type of marketing boasts higher open rates, engagement, and revenues for businesses.

It’s not just that businesses are finding new ways to connect with their customers. According to SimpleTexting’s 2023 SMS marketing survey, 53% of consumers said they wanted to “text a business back via two-way messaging.”

So, unlike unsolicited marketing that jumps in your customers’ faces, SMS is communication your customers want and expect. It’s also a more direct option compared to searching for your website or social media accounts and having to wait for a response.

But what can SMS marketing do for restaurants and the F&B industry as a whole?

In this guide, we’ll explore what text message marketing is, the benefits, the data, and when to use it. We’ll also tackle the best practices for SMS marketing for restaurants so you can start creating SMS campaigns today.

What is text messaging for restaurants?

SMS, short for short message service, is a type of messaging used for communication. SMS marketing is used in 4 main ways:

  • For promotions, like special offers, or for restaurants discount dishes or happy hour.
  • For transactional purposes, like after you make a purchase and a business sends you a payment confirmation.
  • As reminders, for upcoming events, appointments, or transactional reminders like payment reminders.
  • For broadcasts and announcements, which may or may not be promotional in nature.

Top stats about SMS marketing

Many businesses think SMS marketing is a thing of the past. But the data tells a different story.

According to research by SimpleTexting, 45% more businesses are using SMS marketing in 2024 compared to 2022.

In addition, 80% of businesses are using text message marketing software to text customers.

Click-through rates (CTR) are among the most important metrics for any marketing campaign. In SMS marketing, businesses report a CTR between 21% and 35%, while opt-out rates are significantly low at 1% to 2%.

SMS marketing also boasts a higher engagement rate compared to other forms of marketing. SimpleTexting’s survey of 1,400 respondents found 81% of consumers checking the SMS notification “within just 5 minutes of receiving them.” Meanwhile, nearly 30% of consumers check text messages within “just 60 seconds of receipt.”

Moreover, businesses using text message marketing are attributing 11% to 20% of their revenue to SMS campaigns.

With this much opportunity for engagement and CTR, roughly 70% of companies are increasing their SMS marketing budgets in 2024.

Benefits of SMS marketing for restaurants

Not sure why you should use SMS marketing for your F&B concept or restaurant chain? Here are 7 benefits of using SMS marketing.

Better reach

Using SMS marketing means casting a wider net and reaching more restaurant guests. It’s also an ‘immediate’ type of communication.

Data from SimpleTexting’s 2024 report shows 87% of businesses using SMS marketing saying their “digital marketing is successful.”

Higher engagement

Text message marketing has higher open rates and engagement rates compared to other forms of marketing.

SMS messages have a 98% open rate, which is 5 times higher than email open rates. Roughly 90% of people open a text message within 3 minutes, while 85% of smartphone users prefer SMS to emails or calls.

Opportunity for personalization

McKinsey defines personalization as “when seller organizations use data to tailor messages to specific users’ preferences.”

Using personalization marketing, businesses can reduce customer acquisition costs by up to 50% and boost revenues by 5% to 15%. (McKinsey)

Higher sales

SMS marketing combined with personalization can mean a stronger SMS marketing strategy for a restaurant.

A 5% increase in loyalty and retention can mean a profit boost of 25% to 95%.

You can use SMS marketing to increase restaurant reservations, make up for last-minute cancellations and more.

Waitlist management

Text message marketing is great for restaurants because it helps them manage waitlists and engage guests while they wait.

Restaurants using reservation and table management software, like Servme, often offer waitlist management.

Measurable with data and analytics

Another benefit of using SMS marketing in a restaurant is being able to measure analytics. You can measure data like:

  • Number of SMS messages sent per day, week, or month
  • Number of responses
  • Click-through-rate (for links in SMS)
  • Engagement rate

Cost-effective

SMS marketing is considered a cost-effective communication method.

Higher guest retention

By personalizing guest communications and engaging guests during wait times or ahead of an upcoming booking or dining event, you can build rapport with your guests.

High conversion rate

Nearly 91% of companies report higher conversion rates when text message marketing is part of their broader marketing campaigns.

Best practices for SMS marketing for restaurants

Get consent

Make sure you get customers’ consent to send them text messages about your latest news, offerings, etc.

Create an SMS marketing strategy

Successful text message marketing begins with a strategy. Create an SMS marketing strategy for your restaurant and outline the top areas or reasons when you will message guests.

Consider messaging frequency

Like email, you need to consider the frequency of sending restaurant guests an SMS. You don’t want to end up messaging guests every day.

Optimize for best results

Make sure your text messages are:

  • optimized for a specific campaign
  • are within the character limit, 160 characters, including spaces (links are shortened)
  • include a call-to-action or next steps
  • include a link, when needed, like your reservation widget or send guests to a mobile-optimized landing page

Include a CTA

Depending on the campaign, make sure you add a CTA in your text messages to guests.

Automate

You can use Servme’s restaurant reservation software to automate sending text messages to your guests. Servme has a built-in SMS automation feature. You can personalize your SMS campaigns with dynamic lists and auto-tags.

A/B test

Consider A/B testing for:

  • The time of day you send your messages
  • The day of the week when you message guests
  • The different variations of your text messages
  • Whether guests click your links or not
  • Response rates

Analyze your results

Finally, the last step in a successful SMS marketing strategy is analyzing the results of your campaigns.

When to use text messaging for your restaurant

New venue opening

Use SMS marketing for your restaurant when you want to unveil the launch of a new branch or venue.

Waitlist management notifications

Restaurants and bars using text message marketing to manage their online and offline waitlists.

Sending out special offers

You can use SMS to notify guests about special offers. Think ‘Happy Hour’ or mid-week special offers.

Special event announcements

SMS is great for sharing special announcements or events.

Special or limited-time menus

Get people excited about your limited-time menus with SMS marketing.

Special birthday offers

Make your guests feel extra special by sending them a text message on their birthdays.

If you’re using Servme, you can automate your SMS messaging using auto-tags and dynamic lists in your guest book.

Guest surveys

Use SMS to ask restaurant guests to answer your quick survey.

According to SimpleTexting, customer satisfaction surveys and customer support are the most common reasons businesses use SMS marketing.

Countries where email isn’t popular

In some countries, email marketing isn’t that popular. Using SMS marketing can be a game-changer for your restaurant in driving reservations, engagement, and sales.

Want to see how SMS can boost your restaurant’s revenues? Try it through Servme today!